Online Reporter
Farirai Machivenyika
Senior Reporter
THE revival of the country’s motor industry received a boost yesterday following a pact between AVM Africa and Dinson Iron and Steel, the country’s largest iron and steel company.
The agreement will see the companies working together in the supply of iron and steel products to AVM Africa, which assembles buses and trucks.
The agreement was signed by AVM Africa’s managing director, Mr Jacob Kupa and Dinson’s chief executive, Mr Benson Xu, at a ceremony attended by Industry and Commerce Minister, Mangaliso Ndlovu in Harare.
In his remarks, Minister Ndlovu said the agreement was a huge step in promoting local production and laying the foundation for the revival of the motor industry and iron and steel sectors.
“AVM Africa, a proud local motor industry player and Dinson Iron and Steel, one of the largest investors in our iron and steel sector, are demonstrating the importance of collaboration in driving value chains.
“Such synergies ensure that raw materials produced locally are transformed into finished products within our borders.
“This not only reduces imports, but also ensures that jobs, skills and wealth are retained within Zimbabwe,” Minister Ndlovu said.
He added that the entry of Dinson into the country has been a game-changer, resulting in strong linkages across sectors of the economy that include the iron and steel sector itself, construction, mining, energy, transport and agriculture.
“The benefits of this agreement are immense. Firstly, it will breathe new life into our iron and steel sector, which is central to our industrialisation agenda.
“Secondly, it will resuscitate our motor industry, which is currently operating at less than five percent of its installed capacity. By strengthening partnerships such as this one, we aim to move towards full utilisation of capacity and expand beyond,” Minister Ndlovu said.
Mr Kupa said the agreement was a positive development for the motor industry.
“This is a positive development for the local motor industry value chain and promotion of the beneficiation of the steel industry. We have 79 companies in the motor industry value chain and this agreement brings them to 80,” he said.
Mr Kupa said their target was to improve the supply of locally assembled buses and trucks and eventually export.
At its peak in the 1980s and 1990s, AVM Africa produced 40 buses monthly and employed up to 2 500 people directly and thousands more in downstream industries.
Mr Xu said the agreement was a sign of his company’s support for the Government’s industrialisation agenda.
“We want to play our part in the Government’s industrialisation agenda and promotion of the motor industry through the availability of local raw materials,” he said.
